When Decision Makers Seek Out Information That Reaffirms Their Past

question 57

Multiple Choice

When decision makers seek out information that reaffirms their past choices and discount information that contradicts past judgments, they are exhibiting___________ _ .

• A) the anchoring effect
• B) self- serving bias
• C) confirmation bias
• D) availability bias

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Definitions:

Adjusting Journal Entry

An accounting entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.

Wages Expense

Costs incurred by a company for the payment of wages to its employees, typically reported on the income statement.

Explanation

A statement or account that makes something clear or understandable, often used to provide reasoning or details.

Unearned Consulting Fees

Money received for consulting services that have not yet been provided, representing a liability until the service is performed.